Adjustment

An adjustment is a dollar or percentage modification applied to a comparable sale’s price to account for relevant differences between that property and the subject being appraised. The goal is to estimate what each comparable would have sold for if it more closely matched the subject property.

Adjustments are made for factors such as location, gross living area (GLA), condition, age, lot size, amenities and market conditions at the time of sale. A positive adjustment increases the comparable’s price when it is inferior to the subject in a specific characteristic, while a negative adjustment decreases it when the comparable is superior.

Adjustments should be supported by market-derived data and sound reasoning rather than applied arbitrarily. Their credibility is central to the reliability of the sales comparison approach, and unsupported or inconsistent adjustments are common findings in appraisal reviews that can weaken an otherwise well-supported value conclusion.